There are three types of retirement pensions. How much severance pay is there when a person works at a company? I often wonder how the company I worked for operates retirement funds. Think about it every now and then. It’s okay to ask whether you receive a lump sum or in the form of a pension. There are many cases that go unnoticed.
In today’s post, we will look into how the company pays severance pay in the form of a pension rather than a lump sum, or how to check how much my retirement pension is.
retirement pension
In order to stabilize the worker’s livelihood and secure retirement income after retirement, the company accumulates retirement benefit funds in a financial institution during the worker’s employment period. The money is managed by the company or the worker, and the retirement benefit accumulated at the time of retirement is converted into a pension or lump sum. This is a system that pays
Extended Benefit Retirement Pension System (db)
It is a retirement pension system in which the retirement benefits that workers receive when they retire are determined in advance.
The company deposits the contribution into a financial company every year and manages it responsibly, allowing workers to receive a pre-determined level of retirement pension regardless of the management results.
The amount of retirement pension is the same as the existing retirement payment system and is calculated based on the average wage of the three months immediately before retirement, making it an advantageous system for long-term employees with high wages in the last year of general service.
Retirement pension DB type characteristics
3 Types of Retirement Pension Inquiry on Retirement Pension Payment Amount – Retirement Pension – Retirement Pension DB Type Features
The company is responsible for managing the severance pay, and workers are not directly involved in investing or managing the severance pay. If a loss occurs, the company compensates for it, and the profit portion is also organized as the company’s profits.
Early withdrawal of retirement pension is not possible. However, in exceptional cases where there are reasons such as home purchase for a homeless person, deposit for rent, family medical expenses, personal rehabilitation, marriage funds, or college tuition, a loan of up to 50% is possible using retirement savings as collateral.
The downside is that personal management is not possible and the rate of return cannot be actively managed. However, it is also an advantageous product for large companies, long-term employees, and workers with high wage increase rates.
To receive pension, you must be 55 years of age or older and have at least 10 years of subscription.
DB type severance pay calculation method: average wage for 3 months before retirement
Defined contribution pension system (DC type)
It is a retirement pension system in which the level of company contributions is determined in advance and benefits vary depending on investment performance.
Company contribution (more than 1/12 of total annual wages) As a pre-determined retirement pension system, the company regularly pays the contribution to the worker’s individual account, workers directly manage the savings, and the worker can pay additional contributions.
Workers can receive retirement benefits by combining the company’s contributions and their own operating profits and losses.
Defined contribution pension system characteristics (DC type)
3 types of retirement pension Inquiry on retirement pension payment amount – Retirement pension – Defined contribution pension system characteristics (DC type)
It can be operated in a variety of ways, taking into account the investment propensity of workers.
This type is more advantageous for small and medium-sized businesses and short-term workers, and early withdrawal is possible when conditions are met.
If there are reasons such as home purchase for a non-homeowner, rental deposit, family medical expenses, personal rehabilitation, marriage funds, college tuition, etc., a loan of up to 50% is possible using retirement savings as collateral.
Management responsibility lies with the worker, and profits or losses generated according to the results of reserve management are reflected and retirement benefits may change.
You can receive pension only if you are 55 years of age or older and the subscription period is more than 10 years.
Expanded Contribution DC Type Retirement Payment Calculation Method: 10% of monthly salary, an amount equivalent to 1/12 of the total annual deposit is transferred to the employee’s retirement pension account.
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Individual Retirement Pension System (IRP)
The personal IRP account is a retirement pension system that allows the company to pay additional contributions in addition to the contributions.
Workers sign up directly while working, self-employed workers for less than a year, workers at companies that apply a retirement pay system other than a retirement pension, etc. can sign up.
This is a retirement pension system that allows you to continue to accumulate and operate the retirement benefits you receive upon retirement.
3 types of retirement pension Inquiry on retirement pension payment amount – Retirement pension – Individual retirement pension system (IRP)
IRP Retirement Pension Features
You can pay up to 18 million won per year to the IRP retirement pension account and receive a tax deduction of up to 7 million won.
step. If you sign up for a pension savings account, you can receive a total tax deduction of 7 million won by adding up to a maximum of 4 million won in pension savings.
Income tax payment is postponed until IRP is terminated.
Workers at companies that have introduced retirement pension (DC/DB) can make additional payments by opening an individual retirement pension account.
Special provisions: Workers in cases of workplaces employing less than 10 workers at any time. agreement. You can set up an individual retirement pension according to your needs.
Advantages of IRP retirement pension
Workers can receive retirement benefits without worrying about arrears through the company’s savings, and employers can reduce corporate tax on contributions.
Even if you change companies, you can plan for retirement by continuing to accumulate retirement benefits through the Individual Retirement Pension System (IRP) and receiving pension after age 55.
In the case of a severance pay system, the amount of retirement benefits is determined based on the final wage, so flexibility is reduced. In the case of a defined contribution retirement pension, an amount of more than 1/12 of the total wage is accumulated each year. Salary system, performance-based pay system. The retirement benefit level changes according to changes in the wage system, so flexible response is possible.
How to check retirement pension payment amount
1. You must search the Financial Supervisory Service website in the search bar and then access the integrated pension plan.
3 Types of Retirement Pension Inquiry on Retirement Pension Payment Amount – Retirement Pension – How to Check Retirement Pension Payment Amount
2. If you want to check your retirement pension payment amount, you must register as a member.
3 Types of Retirement Pension Inquiry on Retirement Pension Payment Amount – Retirement Pension – How to Check Retirement Pension Payment Amount
3. You will be prompted to log in with a certificate. You can log in by selecting whatever is convenient for you.
3 Types of Retirement Pension Inquiry on Retirement Pension Payment Amount – Retirement Pension – How to Check Retirement Pension Payment Amount
4. If you have logged in with your certificate, you can check it by clicking Check My Pension.
3 Types of Retirement Pension Inquiry on Retirement Pension Payment Amount – Retirement Pension – How to Check Retirement Pension Payment Amount
Go to Financial Supervisory Service-Integrated Pension Portal